This Case is about Finance
Publication Date: 03/18/2011
Two workers at Harmonic, Marc Davis and Harriet Burns, have a chance to buy the business from their boss, who is also the founder of the company. As well informed insiders, who understand the business, Davis and Burns consider the dangers are far outweighed by the advantages of ownership. While the choice to buy Harmonic is not difficult for them, organizing funding proves more challenging.Â The firm is preparing to start brand-new hearing aid merchandise; Davis and Burns need the funding package to contain the additional capital needed to finish the launching and the development. Two funding options are presented: one is almost all debt-funded, the other all equity. Pupils discover the advantages and disadvantages, must examine both funding options, and advocate the most suitable choice.